Cyber Insurance – Are you Covered?

by akesha / last updated January 30, 2019

According to the National Cyber Security Centre, 52% of UK businesses were victim to a cyber-attack in 2017. That figure has increased from 46% in 2016 and 24% in 2015 (Beazley, May 2018). There is a worrying upward trend in play…

The impact of cyber-attacks can have long reaching consequences and cause distress in businesses of all sizes – in January 2017, Lloyds TSB hit the headlines following a cyber-attack which potentially blocked around 20 million customers from accessing their bank accounts and in March 2017 the largest web company Google were hit with a phishing attack allowing hackers access to customer account records. These are both high-profile examples of a cyber-attack on large well-known companies, however cyber criminals will also attack smaller companies just as frequently.

It can be difficult for Salon businesses to effectively handle cyber-attacks and impossible to predict when they will happen. Many businesses rely on anti-virus software installed on their machines and implement firewall protection on their network, however this appears to be no longer enough to defend against the increasingly devious cyber criminals, who continue to advance their own technologies to stay ahead of the security software.

It can be difficult for Salon businesses to effectively handle cyber-attacks and impossible to predict when they will happen.

This is where Cyber Insurance comes into it’s own, as it will help your Salon business survive a seemingly inevitable attack in the future. Cyber Insurance has provisions within the policy cover to help with investigating any breach, covering any losses involved and assist in paying legal costs and any regulatory fines that may emanate from a breach.

Being relatively new into the market, around 10 years old, Cyber Insurance has had one of the fastest new policy take-up rates in recent years, as clients look for assistance against cyber crime and especially with the arrival of the General Data Protection Regulation (GDPR). Under these new regulations, it is mandatory for all businesses including Salons to report any data breaches and without a proper insurance policy in place, Salons could face huge fines for any breach.

Many clients ask what Cyber Insurance actually covers, as there is a definite absence of education on the subject.

In general, you can expect the following covers are available under a Cyber Insurance policy:-

• Providing expert analysis to investigate any breach
• Handle the notification to customers and regulatory bodies
• Covering class action costs and legal fees
• Assist in paying legal costs and regulatory fines
• Crisis Management assistance providing expert support to mitigate reputational damage
• Cyber extortion covering losses following then threat of extortion and access to expertise in advising and helping to deal with an incident
• Business Interruption costs including supply chain issues and system failures. This will also include Increased Costs of Working during the period it takes to rectify

It is fair to say that all Salons will have a cyber exposure in some shape or form, and all Salons would benefit from a Cyber Insurance policy. Policies are available from just two hundred pounds for entry level cover, and this is well worth the investment for the peace of mind alone.